The Nautilus Group Extends Agreement with Champion Nutrition; Nutritional Supplement Business Represents Strong Additional Sales Opportunity to Bowflex Customers

VANCOUVER, Wash.--(BUSINESS WIRE)--Sept. 19, 2002--The Nautilus Group, Inc. (NYSE:NLS), a leading marketer, developer, and manufacturer of branded health and fitness products, today announced the extension of its agreement with Champion Nutrition, a privately held manufacturer of nutritional supplements located in Concord, California. The Nautilus Group began selling Champion's nutritional supplements through its direct business segment in August of 2001.

"We are very pleased with our initial success in up-selling nutritional supplements to our customers through our direct sales channel," said Brian Cook, CEO of The Nautilus Group. "Nutritional supplement sales have proven to be a natural extension of our Bowflex and Nautilus product sales and we view this as a compelling long-term business opportunity."

Under the terms of the extended agreement, The Nautilus Group provided Champion with an interest-bearing loan of approximately $3 million and has an option to buy Champion for $6 million at any time before February 24, 2003.

About The Nautilus Group

The Nautilus Group, Inc. (formerly Direct Focus, Inc.) is a leading marketer, developer, and manufacturer of branded health and fitness products sold under such well-known names as Nautilus, Bowflex, Schwinn and StairMaster. The Company currently markets its Bowflex home fitness equipment and Nautilus Sleep Systems through its direct-marketing channel, using an effective combination of television commercials, infomercials, response mailings, the Internet, and inbound/outbound call centers. The Company sells its Nautilus, Schwinn and StairMaster commercial fitness equipment through its sales force and selected dealers to health clubs, government agencies, hotels, corporate fitness centers, colleges, universities, and assisted living facilities. The Nautilus Group also markets and sells a complete line of consumer fitness equipment, under its Nautilus, Schwinn and StairMaster brands, through a network of specialty dealers, distributors, and retailers worldwide. The Company is headquartered in Vancouver, Washington. The Nautilus Group is located on the Web at

From time to time, The Nautilus Group may issue forward-looking statements relating to its products and services, including statements regarding its Bowflex, Nautilus, Schwinn Fitness, and StairMaster businesses. Factors that could affect The Nautilus Group's actual results include its reliance on a limited product line, fluctuations in advertising rates, market acceptance of its existing and future products, growth management challenges including the growth resulting from the acquisition of the assets of Schwinn Fitness in September 2001 and StairMaster in February 2002, a decline in consumer spending due to unfavorable economic conditions, government regulatory action, its ability to effectively identify and negotiate any future strategic acquisitions, its ability to integrate the StairMaster business and any other acquired businesses into its operations, unpredictable events and circumstances relating to international operations including its use of foreign manufacturers, and general economic conditions. Please refer to our reports and filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K and quarterly reports on Form 10-Q, for a further discussion of these risks and uncertainties. We also caution you not to place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made or to reflect the occurrence of unanticipated events.

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